This is our first installment of a series of educational articles. Check back for more!
| Feeling A Little Overwhelmed? Are you thinking to yourself, what are all of these closing costs that my realtor/lender/the internet keeps ambiguously advising me that I should factor into the cost of buying a new home? Where is that 2 to 5 percent of my total purchase price going? What am I paying for? Am I getting a good deal? Is that exorbitant (and constantly increasing) rent I’m paying to my slumlandlord really all that bad? You’re Not Alone! Last month, results of a nationwide survey conducted by ClosingCorp (a company |  freeimages.com/roland maier |
that provides data on closing costs to the mortgage and real estate industries) revealed that approximately two-thirds of Millennials, adults 18-34, who plan to buy a home are unaware of closing costs. Further, the survey found that more than one-third of adults from all age brackets of potential homeowners are “Not Very” or “Not At All”
aware of closing costs.
In a series of articles, written by a bona fide “newbie” to closing costs (with considerable help from seasoned professionals), we are going to attempt to explain all that is involved from a perspective that won’t involve complicated jargon and will address the information that is often not mentioned by industry professionals who assume you already know the basics.
What Will I Pay?
You can see what your closing costs might be by using FICO’s Closing Cost Calculator:
http://www.myfico.com/loancenter/mortgage/calculators/closingcosts.aspx
Here’s Where Your Money Is Going
According to howstuffworks.com, this is an exhaustive list of the fees that may be included in closing on a home purchase (this varies by location, down payment amount, lender, etc.):
Still Overwhelmed? Don’t Worry, We’re Here to Help!
Don’t know what half of the things on this list are? We’ll go over them in a way that won’t make you want to scream in frustration. Keep checking back or subscribe to make sure you don’t miss anything!
In a series of articles, written by a bona fide “newbie” to closing costs (with considerable help from seasoned professionals), we are going to attempt to explain all that is involved from a perspective that won’t involve complicated jargon and will address the information that is often not mentioned by industry professionals who assume you already know the basics.
What Will I Pay?
You can see what your closing costs might be by using FICO’s Closing Cost Calculator:
http://www.myfico.com/loancenter/mortgage/calculators/closingcosts.aspx
Here’s Where Your Money Is Going
According to howstuffworks.com, this is an exhaustive list of the fees that may be included in closing on a home purchase (this varies by location, down payment amount, lender, etc.):
- Processing Fee
- Appraisal Fee
- Origination Fee
- Discount Points
- Document Preparation Fee
- Attorney Fees
- Home and Pest Inspections
- Homeowner’s and Hazard Insurance
- Private Mortgage Insurance (PMI)
- Surveys
- Prepaid Interest
- Deed Recording Fees
- Title Search Fees
- Title Insurance
- Closing Taxes
Still Overwhelmed? Don’t Worry, We’re Here to Help!
Don’t know what half of the things on this list are? We’ll go over them in a way that won’t make you want to scream in frustration. Keep checking back or subscribe to make sure you don’t miss anything!
